Amazon is the most visited marketplace worldwide, standing out from its competitors in terms of traffic. To give you an idea, in 2023, Amazon Marketplace received around 5 billion monthly visits, while its closest competitor, eBay, did not reach 1.2 billion. A large quantity and variety of items of all kinds are sold on it, offering buyers an intuitive platform with very fast delivery on many of its items.
Selling on Amazon Marketplace also has many advantages, but many brands and sellers rush to sell on this platform thinking that it is the best option when, in reality, not everything that glitters is gold. And that is why we have written this article.
We want to lay all the cards on the table so that you can objectively assess whether Amazon Marketplaces is an interesting site for your business. And to do so, we have compiled the most crucial advantages and disadvantages when selling on Amazon Marketplace. But that’s not all, we have also compared the platform with other powerful marketplaces so that you can see other possibilities. Shall we begin?
Advantages of selling on Amazon Marketplace
Access to a global audience
As we have already said, Amazon is the most visited marketplace worldwide. This means that you will be able to reach a large audience without making huge marketing efforts. But not only that, this platform, having a global presence, will make it easier for you to sell internationally.
This great reach is associated with the possibility of increasing your number of sales and, therefore, your profits. Without going any further, the annual sales volume on Amazon exceeded 574 billion US dollars in 2023 , and this figure continues to grow.
In Spain, Amazon is also the king , ranking above El Corte Inglés and Shein, which occupied second and third position in turnover in 2022.
Sales and logistics infrastructure
Amazon not only does part of the marketing for you, but it also helps you with all the logistics. For starters, as it is a marketplace, you don’t have to worry about developing an e-commerce site yourself, with all the expense that this entails. And, in addition, you have the option of delegating the issue of storage, shipping and returns to the company itself, since Amazon has up to 100 warehouses spread across the world.
To do this, you must join the FBA (Fulfillment by Amazon) program , which, although it has an extra cost, is profitable for many companies and it is worth delegating this aspect of their business as it is cheaper than carrying out the logistics on their own. In addition, the advantage of belonging to this program is that you will automatically telegram number list enter the Amazon Prime Shipping rating on the platform and you will have priority in the Buy Box . Both things even help significantly to boost sales.
Amazon Tools and Support
In addition to offering excellent customer service, Amazon Marketplace also has a seller support team that enhances your experience Comparison with and helps you do well on the platform.
It provides great support when it comes to managing operations on the platform. But, in addition to offering human help, the marketplace also has a seller support blog where brands can find posts that address different topics and issues that read more posts on my persona brands may have on the platform. There is even a forum where sellers can chat with each other and help each other out. This is very valuable, as not many marketplaces have so much valuable content.
Disadvantages of selling on Amazon Marketplace
Amazon costs and commissions
All marketplaces charge commissions Comparison with and sales costs for each product sold, but compared to other competing options, Amazon’s can be higher.
In this marketplace you pay a percentage changsha mobile phone number list for each sale you make through the platform. Therefore, one thing you should make sure of is setting prices with which your profit margin is high enough.
Amazon commissions range from 7% to 15% of sales depending on the sector your item belongs to. In addition, you must pay the price of the plan you have chosen per month or per sale.